The House Commerce and Economic Development Committee was scheduled to discuss two bills that regard increasing the state minimum wage.
House Bill 25, Minimum Wage Increase and Indexing, would increase the state minimum wage to 16 dollars an hour in 2024.
Then the minimum wage would increase annually in relation to the consumer price index.
House Bill 25 was rolled before the committee hearing started.
House Bill 28, a State Minimum Wage Cost-of-Living Increase, provides an annual cost of living adjustment to the minimum wage of 12 dollars an hour.
This would take place on January 1st and the increase would be determined by the consumer price index in the prior year with a 4% cap.
Restaurant servers and other tipped employee’s hourly wage would be 25% of the prevailing minimum wage.
House Bill 25 provides that the minimum wage will not be decreased if the inflation rate falls.
Representative Miguel García says the bill’s passage will be historic for New Mexico.
“This amendment would be historical if adopted, in that the business community has committed to publicly endorse and support House Bill 28. In my 26 year tenure, and as a minimum wage champion, this is a first.”
While there was support from the New Mexico Restaurant Association and the New Mexico Federation of Labor, there was more opposition including testimonies from the New Mexico Business Coalition and the Greater Albuquerque Chamber of Commerce.
Representative Alan Martinez says any hike will lead to inflation.
“Raising wages also raises the cost of living. We've seen it, it's what's driving inflation right now. You pay more, you have to charge more for your services, it raises the cost of living.”
The Committee tabled House Bill 28 on a 6 – 4 vote.